The Pros of Auto Leasing

Many who are in the market for a car have a hard time deciding between buying and leasing. While buying a car can be beneficial in certain situations, leasing also has some major advantages for certain consumers. Those who lease cars get benefits such as lower payments and fewer maintenance issues.

Choice of Car

When you buy a car, you are limited to the type of car that you can afford. When the monthly payment is calculated, many people find that they cannot afford the car that they really wanted. With leasing, this is not as big of an issue. By leasing, you can often afford to get a car that is more expensive and you will not have to stretch your budget too far.

Save on Payments

If you are more interested in saving money, leasing can provide you with a much lower payment than an auto loan could. With leasing, you are only paying for the portion of the useful life of the car that you use. This makes the payment substantially lower than a loan payment in most cases. If you are on a tight budget, you can get a new car for a fraction of what you would otherwise have to pay for it on a monthly basis.

Maintenance

Another benefit of leasing a car is that you will have fewer maintenance issues to worry about. If the car breaks down, you simply take it back to the dealership and they fix it for you for free. If you buy a car and something breaks that is not under warranty, you have to pay for the repairs out of pocket. This can be a substantial cost if you choose a car that is low quality.

Tax Savings

When leasing a car, you can also save money on the taxes. When you purchase a car, you have to pay taxes on the entire value of it. With a lease, you only pay taxes on the amount of the car that you will be using through the lease. This can help you save a bit on the sales tax bill overall.

Back End Transaction

When you are done with a leased car, you simply take it back to the dealership and hand them the keys. When you buy a car, you have to deal with selling the used car to another party or trading it in. When you trade a car in to a dealer, you will likely get much less than what it is worth. With a lease, you can have more control over what happens when the lease expires.